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The NH ABLE Plan

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NH resident benefits

The NH ABLE Plan is offered through the National ABLE Alliance. The plan is established under the NH ABLE Savings Program Act and Section 529A to provide financial accounts for individuals with disabilities. The NH ABLE Plan is created within the NH Department of Revenue, which is the state agency responsible for implementing and administering the NH ABLE Plan.

OVERVIEW

Program type

ABLE Savings plan

Investment manager

BlackRock, Capital Group, Fifth Third Bank, Schwab and Vanguard as the investment managers or providers of their respective Underlying Investments.

Inception

2023

State agency

New Hampshire State Treasurer and the New Hampshire Executive Director of the Governor's Commission on Disability

Program manager

Ascensus College Savings Recordkeeping Services LLC

Manager contract term

MORE INFORMATION

Eligibility

State residency requirements:

Yes

Who can be a participant/owner in the program?

An account may be opened by a qualified beneficiary under section 529A or by an authorized legal representative on his/her behalf.

Program restrictions:

To be eligible for an ABLE savings plan, an individual must have been diagnosed with a disability before age 26, and be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI). Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.

Did you know?

The plan can be used to pay for qualified disability expenses.
This can include education, job training and support, healthcare and financial management.
Savings in an ABLE account will not impact eligibility to receive government benefits.
The first $100,000 is exempt from the Supplemental Security Income limit, and beneficiaries will continue to receive Medicaid regardless of account size.
Residents are not limited to investing in their own state's ABLE plan.
Another state may offer a plan with better suited investment options, lower fees or preferred features.
Visit this plan's website to learn more.

Contributions

Maximum contributions:

Annual contribution limit is currently $19,000 from all sources. If the beneficiary works, the beneficiary can also contribute part, or all, of their income to their ABLE account. This additional contribution is limited to the poverty-line amount for a one-person household. For 2025, this amount is $15,060. The designated beneficiary is not, however, eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.

ABLE account beneficiaries can qualify for the Saver's Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions may qualify for this special credit designed to help low- and moderate-income workers.

There is also a lifetime account limit of $624,411, at which point no new contributions may be made.

Minimum contributions:

The initial minimum contribution amount is $25.00. The minimum contribution amount using the paper Additional Contributions Form is $1.00

Investment Options

Target-Risk Options:

Select among 7 portfolio options: Aggressive Option, Moderately Aggressive Option, Growth Option, Moderate Option, Moderately Conservative Option, Conservative Option or Money Market Option.

Bank Money Market Investment / Checking Option:

A checking option with Fifth Third Bank, which invests 100% of its assets in an FDIC-insured checking account.

Fees & Expenses

Enrollment or application fee:

None

Account maintenance fee:

$56, assessed at $14 per calendar quarter. The Annual Account Maintenance Fee will be $31.00 if Electronic Delivery is established for the Account, and will be withdrawn from the Account in the amount of $7.75 quarterly. The Plan may also reduce the Annual Account Maintenance Fee an additional $5.00 per year if the Account Owner or Authorized Individual is a resident of the State.

$2 monthly service charge for investments in the Checking Option, waived for accounts with an average daily balance of more than $250.

Program management fees:

0.26%, and none for the Checking option.

Expenses of the underlying investments:

0.05% - 0.10%

Total asset-based expense ratio:

0.31% - 0.36% and none for the Checking account option.

Fees or restrictions on the number of disbursements

None

Taxes and other Benefits

Program match on contributions:

None

State tax deduction or credit for contributions:

New Hampshire does not have a state income tax. Income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the interest and dividends tax pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

State tax recapture provisions:

N/A

State tax treatment of qualified distributions:

Pursuant to New Hampshire RSA 195-K:4, income and distributions from any qualified ABLE program as defined in the Internal Revenue Code of 1986, as amended, shall be exempt from the interest and dividends tax pursuant to RSA 77:4-h, provided that distributions from the plan which are subject to federal income tax shall be subject to the interest and dividends tax pursuant to RSA 77 on the accrued income portion of the savings plan distribution.

State tax treatment of rollovers:

New Hampshire does not have a state income tax.

Medicaid eligibility

Under the ABLE Act, funds in a STABLE Account should be disregarded (i.e., treated as an excluded resource) for purposes of determining eligibility for Medicaid benefits. Additionally, suspension of SSI benefits due to a STABLE Account balance of over $100,000 will have no effect on Medicaid eligibility.

Medicaid recapture provisions

Under Section 529A, following the death of the beneficiary, any state may file a claim against the beneficiary or the NH ABLE Account itself for the amount of the total medical assistance paid for the beneficiary under the state's Medicaid plan after the establishment of the NH ABLE Account (or any ABLE account from which amounts were rolled or transferred to the current NH ABLE Account). The amount paid in satisfaction of such a claim is not a taxable distribution from the NH ABLE Account.

Is there a debit card/ purchasing card available, and if so, at what cost?

If you are invested in the Checking Account Option, you may access funds by using your debit card.

Statutory protection of an account from creditors:

Distributions & Terminations

To whom are distributions made payable:

Only the beneficiary, or, if one has been named, the authorized legal representative may direct withdrawals from The NH ABLE Account.

Account Changes

Policy regarding participant/owner changes:

A change in the beneficiary of TThe NH ABLE Account is not treated as a distribution and is not subject to federal gift or GST taxes if the new beneficiary is an eligible individual and a sibling of the current beneficiary. However, if the new beneficiary is not a sibling of the current beneficiary, the change is treated as a non-qualified withdrawal by the current beneficiary and may have federal gift tax or GST tax consequences.

Documents, Access & Reporting

Does participant have online password-protected access to account?

Yes

Can the complete enrollment process including funding be done online?

Yes

Documents and other services accessible or downloadable on the program's public Web site:

Contact

Website:

https://savewithable.com/nh/home.html

Telephone:

888-609-3263

Email:

nh.clientservice@savewithable.com

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